It has been suggested that for the UK to cut its soaring pensions bill, which is expected to hit £120 billion over the next twenty years, Britain could be forced to introduce mandatory savings for retirement.
Currently less than half of employees within the UK are putting money into a workplace pension scheme, which according to the Office for National Statistics, is the lowest proportion since record began in 1997.
In an attempt to encourage saving for retirement, in October last year the government introduced the automatic-enrolment scheme, which is designed to encourage all employees aged twenty-two and over to put towards a company or national pension plan.
However, the scheme allows employees to opt out, and it is believed that many with a limited disposable income will do so; although one economist has hinted that one way or another, long-term pension contributions will increase, as the government looks to encourage people not to rely on the state pension to support them during retirement.
Planning for retirement is something which should be done at the earliest opportunity; and our team here at Milsted Langdon can advise on the best pension scheme for you; offering tailored advice, guidance and support to help you both now and in the future.
Our team understand the need for early retirement planning, especially as figures recently released have revealed that retirement incomes are becoming lower, yet less people are planning ahead.
So if you want to make sure that your pension plans are realistic for the retirement you want to live, come and speak to one of the Milsted Langdon team.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.